Ion Video Limited has completed significant restructuring, strengthened its Melbourne-based tech team, and raised $2.95 million, positioning itself for a technology relaunch in February 2026 with a cash runway extending to mid-2027.
- Completed aggressive restructuring and reduced trade payables from $2.2m to under $280k
- Raised $2.95 million capital, with 41% subscribed by directors and management
- Technology realigned to core patents with Melbourne-based engineering team
- Discontinued unprofitable customer contracts, cutting $1.3m in annual costs
- Cash runway extended to Q2 2027 with reduced monthly burn and improved R&D claims
Restructuring and Financial Recovery
Ion Video Limited (ASX, IOV) has reported substantial progress in its turnaround strategy, highlighted by a comprehensive restructuring plan led by major shareholders Brent Jones and Anthony Baker. The company has successfully reduced its trade creditors and payables from $2.2 million at mid-2025 to less than $280,000, significantly improving its financial health. This reduction was achieved through renegotiations and repayments, addressing long-standing arrears that had burdened the business.
Alongside this, Ion Video raised $2.95 million in capital during the quarter, with a notable 41% of the raise coming from directors and management, signalling strong insider confidence. The capital injection, combined with early conversion of convertible notes, has saved the company approximately $265,000 in interest payments, further easing financial pressures.
Technology and Team Realignment
The company is preparing for a formal relaunch of its ION Video brand and technology on 9 February 2026. Central to this relaunch is the realignment of its core technology to patented innovations, particularly the Video Virtualisation Engine™ (VVE), which transforms large video files into searchable, AI-enriched data. This repositioning aims to strengthen Ion Video’s market differentiation and value proposition.
Ion Video has also restructured its technology team, consolidating engineering functions in Melbourne to enhance collaboration and optimise research and development claims within Australia. This shift is expected to yield a more favourable R&D tax refund, increasing returns by 16 cents per dollar spent. The engineering cost base has been trimmed to approximately $750,000 annually, with new hires incentivised through equity arrangements to reduce cash outflows.
Customer Contracts and Cost Efficiency
In a strategic move, Ion Video has elected not to renew several existing contracts, including those with IMG, Cricket Australia, and others, due to unviable economics and bespoke development costs that could not be leveraged across clients. This decision will reduce annualised revenues by around $500,000 but is expected to deliver $1.3 million in net annualised cost savings by cutting recurring engineering and third-party expenses.
Management’s focus is now on unveiling a new go-to-market strategy alongside the technology demonstration in February, aiming to secure a stronger foothold in the competitive video technology sector.
Cash Flow and Outlook
Despite a current quarterly cash burn, management forecasts a reduced monthly cash burn of $160,000 to $190,000 from February 2026 onwards. With anticipated R&D grants and timely payments, Ion Video expects to maintain sufficient cash reserves until at least the second quarter of 2027. The company has not planned further capital raises but retains the capacity to do so if necessary.
This improved financial footing, combined with a sharpened technology focus and streamlined operations, sets Ion Video on a path to stabilise and potentially grow in a challenging market environment.
Bottom Line?
Ion Video’s restructuring and capital raise set the stage for a critical technology relaunch, but market response and contract renewals will be key to sustaining momentum.
Questions in the middle?
- How will the market receive Ion Video’s technology relaunch and new go-to-market strategy?
- What impact will the loss of $500k in annualised revenue have on long-term growth prospects?
- Can the company sustain its improved cash flow position without further capital raises?